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politics22h ago
Clarity Act text lets crypto firms offer stablecoin rewards while shielding bank yield
- The Clarity Act compromise would permit crypto firms to offer rewards based on bona fide activity, not on traditional bank-like yield.
- The text allows activity-based rewards while blocking yield that mirrors bank deposits.
- A rulemaking process within a year would outline how yield programs can operate, including balance, duration, and tenure considerations.
- Senators Tillis and Alsobrooks brokered the compromise after months of negotiations with the White House and industry groups.
- Industry reactions were mixed, with Coinbase noting the language preserves activity-based rewards while addressing bank lobby concerns.
- The act underscores that depository institutions provide essential services and that rewards tied to deposits could curb bank funding.
- The proposal indicates a dialogue between crypto and banking interests ahead of a possible markup in the Senate Banking Committee.
- Digital Chamber welcomed the public release of stablecoin yield language as a step toward resolving final issues before markup.
- The text creates anti-evasion language and directs regulators to consider activity definitions in the rulemaking process.
- The agreement signals a pragmatic path forward for crypto reward programs without mimicking traditional banks' deposit yields.
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